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ACS Expands State Medicaid Presence with $156 Million Tennessee Contract

DALLAS, May 19 /PRNewswire-FirstCall/ -- Affiliated Computer Services, Inc.'s (NYSE: ACS) state Medicaid presence is growing to include 14 states and the District of Washington, following a contract agreement with the State of Tennessee. The engagement with the Tennessee Bureau of TennCare for the TennCare Management Information System (TCMIS) has a length of five years and a total value of $156 million.

ACS will assume daily operations, data management, and ongoing systems modifications for the TCMIS, used by the state for the management of its Medicaid program.

"Tennessee has been a leader in Medicaid managed care and is expecting ACS' expertise and innovation to continue TennCare's advancement as one of the country's premier programs," said Christopher T. Deelsnyder, ACS senior vice president and managing director, Government Healthcare Solutions. "We are committed to our client's success and to building the enhancements that will benefit all Tennesseans enrolled in TennCare."

ACS will also evaluate TennCare's current business processes and collaboratively work with the bureau to recommend improvements while performing multiple enhancement projects that will enable TennCare to leverage technology in the most efficient manner. These enhancements include the development of an enterprise project management office that will help TennCare effectively measure, monitor and manage the numerous and complex technology projects that will be occurring within the bureau.

"Using Tennessee's competitive bid process to help ensure TennCare vendors bring added value at competitive prices is a cornerstone of our program's operational success," said Darin Gordon, deputy commissioner, Bureau of TennCare. "TennCare looks forward to working with ACS as they assume their contracted responsibilities for an integral part of our day-to-day operations."

ACS is partnering with Zycron, a Nashville-based minority-owned information technology staffing and outsourcing company.

"Zycron is excited to partner with ACS in supporting the state in meeting TennCare objectives," said Zycron Chief Executive Officer Darrell Freeman. "Zycron's strong presence in the IT industry coupled with ACS' international profile is the ideal solution for the state of Tennessee."

TennCare is Tennessee's Medicaid managed care program, serving 1.2 million Tennesseans through a network of contracted, managed care companies. The core of its population consists of Medicaid-eligible people, most of whom are low- income children and families, pregnant women, disabled people, women needing treatment for breast or cervical cancer, or persons requiring care in a nursing facility.

ACS is a national leader in state healthcare program administration, offering a full spectrum of systems and complementary services through an integrated solution, from care management solutions and child health programs to pharmacy benefits management and traditional Medicaid fiscal agent services. ACS supports more than 23 million program recipients and processes nearly 550 million Medicaid healthcare claims annually, representing close to $50 billion in provider payments. As the nation's largest government program pharmacy benefits administrator, ACS serves 28 states, the District of Columbia, and the Department of Labor with drug expenditures totaling more than $13 billion.

ACS, a global FORTUNE 500 company with 63,000 people supporting client operations reaching more than 100 countries, provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company's Class A common stock trades on the New York Stock Exchange under the symbol "ACS." Learn more about ACS at

The statements in this news release that do not directly relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties, many of which are outside the Company's control. As such, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the Company's prior filings with the Securities and Exchange Commission, including our most recent filing. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise.

SOURCE Affiliated Computer Services, Inc.
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